Central excise duty is levied on excisable goods produced or manufactured in India. Thus, in short, four conditions need to be fulfilled for the levy of excise duty which are as under:

1»   It must be goods;

2»   It must be excisable goods;

3»   It must be either produced or manufactured;

4»   Such manufacture or production must be in India.

Excisable goods are goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 as being subject to a duty of excise and includes salt.

Manufacture includes any process:

1»   incidental or ancillary to the completion of a manufactured product;
2»  deemed manufacturing specified in Central Excise Tariff Act, 1985
3»   which in relation to specific goods as specified under Schedule III of Central Excise Act, 1944 involves packing or repacking of such goods in a unit container or labeling or relabelling of containers including declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer.

Separate registration is required in respect of separate premises except in cases where two or more premises are actually part of the same factory (where processes are interlinked), but are segregated by public road, canal or railway-line. The fact that the two premises are part of the same factory will be decided by the Commissioner of Central Excise based on certain specified factors.